After meeting with the contractor yesterday, he determined that I didn't need to go the new construction window route. By changing to a Soft Lite Imperial LS replacement window, he was able to lower my per window price from $1250 to $820. This price includes 9/9 grids inside the window. Basic white vinyl inside and out. He is going to work with what I have and use a composite (Kleer) bullnose sill and trim the exterior of each window also. I am also getting some Hardie Plank siding done at the same time for $980 a square. Going with the replacement window saved me from having to tear up my interior trim and is still going to give me a long lasting, maintenance free exterior. How does this sound for a price? It seems fair to me.
Thanks

Your opinion of a fair price is far more important than ours. You've done your due diligence and spent the time with various contractors, and now you're comfortable with a contractor, a window, and the price. Good job - that's a winning combination.